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Park National Corporation reports financial results for second quarter and first half of 2022

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Park National Corporation
Park National Corporation

NEWARK, Ohio, July 25, 2022 (GLOBE NEWSWIRE) -- Park National Corporation (Park) (NYSE American: PRK) today reported financial results for the second quarter and first half of 2022. Park's board of directors declared a quarterly cash dividend of $1.04 per common share, payable on September 9, 2022 to common shareholders of record as of August 19, 2022.

“Park bankers’ enthusiasm, energy and competence are valued more than ever by customers and prospects alike. I am grateful for each of them and the talents they share,” said Park Chairman and Chief Executive Officer David Trautman. “We listen to customers first, then find ways to help them on their journeys. If we do this right, we earn the chance to serve more as a result. It’s a wonderful circle of service and growth.”

Park’s net income for the second quarter of 2022 was $34.3 million, a 12.3 percent decrease from $39.1 million for the second quarter of 2021. Second quarter 2022 net income per diluted common share was $2.10, compared to $2.38 in the second quarter of 2021. Park's net income for the first half of 2022 was $73.2 million, a 10.7 percent decrease from $82.0 million for the first half of 2021. Net income per diluted common share was $4.48 for the first half of 2022, compared to $4.98 for the first half of 2021.

Park's community-banking subsidiary, The Park National Bank, reported net income of $34.9 million for the second quarter of 2022, a 14.6 percent decrease compared to $40.9 million for the same period of 2021. Park National Bank reported net income of $76.4 million for the first half of 2022, compared to $86.0 million for the first half of 2021.

Headquartered in Newark, Ohio, Park National Corporation has $9.8 billion in total assets (as of June 30, 2022). Park's banking operations are conducted through its subsidiary The Park National Bank. Other Park subsidiaries are Scope Leasing, Inc. (d.b.a. Scope Aircraft Finance), Guardian Financial Services Company (d.b.a. Guardian Finance Company) and SE Property Holdings, LLC.

Complete financial tables are listed below.

Category: Earnings

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

Park cautions that any forward-looking statements contained in this news release or made by management of Park are provided to assist in the understanding of anticipated future financial performance. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements.

Risks and uncertainties that could cause actual results to differ materially include, without limitation:

  • the ever-changing effects of the global novel coronavirus (COVID-19) pandemic - - the duration, extent and severity of which are impossible to predict, including the possibility of further resurgence in the spread of COVID-19 or variants thereof - - on economies (local, national and international), supply chains and markets, on the labor market, including the potential for a sustained reduction in labor force participation, and on our customers, counterparties, employees and third-party service providers, as well as the effects of various responses of governmental and nongovernmental authorities to the COVID-19 pandemic, including public health actions directed toward the containment of the COVID-19 pandemic (such as quarantines, shut downs and other restrictions on travel and commercial, social or other activities), the availability, effectiveness and acceptance of vaccines, and the implementation of fiscal stimulus packages;

  • Park's ability to execute our business plan successfully and within the expected timeframe as well as our ability to manage strategic initiatives in light of the impact of the COVID-19 pandemic and the various responses to the COVID-19 pandemic;

  • current and future economic and financial market conditions, either nationally or in the states in which Park and our subsidiaries do business, including the effects of higher unemployment rates, an acceleration in the pace of inflation, U.S. fiscal debt, budget and tax matters, geopolitical matters (including the impact of the Russia-Ukraine conflict and associated sanctions), and any slowdown in global economic growth, in addition to the continuing impact of the COVID-19 pandemic on our customers’ operations and financial condition, any of which may result in adverse impacts on the demand for loan, deposit and other financial services, delinquencies, defaults and counterparties' inability to meet credit and other obligations and the possible impairment of collectability of loans;

  • factors that can impact the performance of our loan portfolio, including changes in real estate values and liquidity in our primary market areas, the financial health of our commercial borrowers and the success of construction projects that we finance, including any loans acquired in acquisition transactions;

  • the effect of monetary and other fiscal policies (including the impact of money supply, market interest rate policies and policies impacting inflation, of the Federal Reserve Board, the U.S. Treasury and other governmental agencies) as well as disruption in the liquidity and functioning of U.S. financial markets, as a result of the COVID-19 pandemic and government policies implemented in response thereto, may adversely impact prepayment penalty income, mortgage banking income, income from fiduciary activities, the value of securities, deposits and other financial instruments, in addition to the loan demand and the performance of our loan portfolio, and the interest rate sensitivity of our consolidated balance sheet as well as reduce interest margins;

  • changes in the federal, state, or local tax laws may adversely affect the fair values of net deferred tax assets and obligations of state and political subdivisions held in Park's investment securities portfolio and otherwise negatively impact our financial performance;

  • the impact of the changes in federal, state and local governmental policy, including the regulatory landscape, capital markets, elevated government debt, potential changes in tax legislation that may increase tax rates, infrastructure spending and social programs;

  • changes in laws or requirements imposed by Park's regulators impacting Park's capital actions, including dividend payments and stock repurchases;

  • changes in consumer spending, borrowing and saving habits, whether due to changes in retail distribution strategies, consumer preferences and behavior, changes in business and economic conditions (including as a result of the COVID-19 pandemic and reactions thereto), legislative and regulatory initiatives (including those undertaken in response to the COVID-19 pandemic), or other factors may be different than anticipated;

  • changes in customers', suppliers', and other counterparties' performance and creditworthiness, and Park's expectations regarding future credit losses and our allowance for credit losses, may be different than anticipated due to the continuing impact of and the various responses to the COVID-19 pandemic and inflationary pressures;

  • Park may have more credit risk and higher credit losses to the extent there are loan concentrations by location or industry of borrowers or collateral;

  • the volatility from quarter to quarter of mortgage banking income, whether due to interest rates, demand, the fair value of mortgage loans, or other factors;

  • the adequacy of our internal controls and risk management program in the event of changes in the market, economic, operational (including those which may result from our associates working remotely), asset/liability repricing, legal, compliance, strategic, cybersecurity, liquidity, credit and interest rate risks associated with Park's business;

  • competitive pressures among financial services organizations could increase significantly, including product and pricing pressures (which could in turn impact our credit spreads), changes to third-party relationships and revenues, changes in the manner of providing services, customer acquisition and retention pressures, and Park's ability to attract, develop and retain qualified banking professionals;

  • uncertainty regarding the nature, timing, cost and effect of changes in banking regulations or other regulatory or legislative requirements affecting the respective businesses of Park and our subsidiaries, including major reform of the regulatory oversight structure of the financial services industry and changes in laws and regulations concerning taxes, FDIC insurance premium levels, pensions, bankruptcy, consumer protection, rent regulation and housing, financial accounting and reporting, environmental protection, insurance, bank products and services, bank and bank holding company capital and liquidity standards, fiduciary standards, securities and other aspects of the financial services industry, specifically the reforms provided for in the Coronavirus Aid, Relief and Economic Security (CARES) Act and the follow-up legislation in the Consolidated Appropriations Act, 2021, the American Rescue Plan Act of 2021, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”) and the Basel III regulatory capital reforms, as well as regulations already adopted and which may be adopted in the future by the relevant regulatory agencies, including the Consumer Financial Protection Bureau, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Federal Reserve Board, to implement the provisions of the CARES Act and the follow-up legislation in the Consolidated Appropriations Act, 2021, the provisions of the American Rescue Plan Act of 2021, the provisions of the Dodd-Frank Act, and the Basel III regulatory capital reforms;

  • the effect of changes in accounting policies and practices, as may be adopted by the Financial Accounting Standards Board (the "FASB"), the SEC, the Public Company Accounting Oversight Board and other regulatory agencies, may adversely affect Park's reported financial condition or results of operations;

  • Park's assumptions and estimates used in applying critical accounting policies and modeling, including under the CECL model, which may prove unreliable, inaccurate or not predictive of actual results;

  • the impact of Park's ability to anticipate and respond to technological changes on Park's ability to respond to customer needs and meet competitive demands;

  • operational issues stemming from and/or capital spending necessitated by the potential need to adapt to industry changes in information technology systems on which Park and our subsidiaries are highly dependent;

  • the ability to secure confidential information and deliver products and services through the use of computer systems and telecommunications networks, including those of Park's third-party vendors and other service providers, which may prove inadequate, and could adversely affect customer confidence in Park and/or result in Park incurring a financial loss;

  • a failure in or breach of Park's operational or security systems or infrastructure, or those of our third-party vendors and other service providers, resulting in failures or disruptions in customer account management, general ledger, deposit, loan, or other systems, including as a result of cyber attacks;

  • the impact on Park's business and operating results of any costs associated with obtaining rights in intellectual property claimed by others and of adequacy of Park's intellectual property protection in general;

  • the existence or exacerbation of general geopolitical instability and uncertainty as well as the effect of trade policies (including the impact of potential or imposed tariffs, a U.S. withdrawal from or significant renegotiation of trade agreements, trade wars and other changes in trade regulations, closing of border crossings and changes in the relationship of the U.S. and its global trading partners);

  • the impact on financial markets and the economy of any changes in the credit ratings of the U.S. Treasury obligations and other U.S. government-backed debt, as well as issues surrounding the levels of U.S., European and Asian government debt and concerns regarding the growth rates and financial stability of certain sovereign governments, supranationals and financial institutions in Europe and Asia and the risk they may face difficulties servicing their sovereign debt;

  • the effect of a fall in stock market prices on Park's asset and wealth management businesses;

  • our litigation and regulatory compliance exposure, including the costs and effects of any adverse developments in legal proceedings or other claims and the costs and effects of unfavorable resolution of regulatory and other governmental examinations or other inquiries;

  • continued availability of earnings and excess capital sufficient for the lawful and prudent declaration of dividends;

  • the impact on Park's business, personnel, facilities or systems of losses related to acts of fraud, scams and schemes of third parties;

  • the impact of widespread natural and other disasters, pandemics (including the COVID-19 pandemic), dislocations, regional or national protests and civil unrest (including any resulting branch closures or damages), military or terrorist activities or international hostilities (especially in light of the Russia-Ukraine conflict) on the economy and financial markets generally and on us or our counterparties specifically;

  • any of the foregoing factors, or other cascading effects of the COVID-19 pandemic that are not currently foreseeable, could materially affect our business, including our customers' willingness to conduct banking transactions and their ability to pay on existing obligations;

  • the effect of healthcare laws in the U.S. and potential changes for such laws, especially in light of the COVID-19 pandemic, which may increase our healthcare and other costs and negatively impact our operations and financial results;

  • risk and uncertainties associated with Park's entry into new geographic markets with our most recent acquisitions, including expected revenue synergies and cost savings from recent acquisitions not being fully realized or realized within the expected time frame;

  • the replacement of the London Inter-Bank Offered Rate (LIBOR) with other reference rates which may result in increased expenses and litigation, and adversely impact the effectiveness of hedging strategies;

  • and other risk factors relating to the banking industry as detailed from time to time in Park's reports filed with the SEC including those described in "Item 1A. Risk Factors" of Part I of Park's Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

Park does not undertake, and specifically disclaims any obligation, to publicly release the results of any revisions that may be made to update any forward-looking statement to reflect the events or circumstances after the date on which the forward-looking statement was made, or reflect the occurrence of unanticipated events, except to the extent required by law.

 

PARK NATIONAL CORPORATION

Financial Highlights

As of or for the three months ended June 30, 2022, March 31, 2022, and June 30, 2021

 

 

 

 

 

 

 

 

 

2022

 

 

2022

 

 

2021

 

 

Percent change vs.

(in thousands, except share and per share data and ratios)

2nd QTR

1st QTR

2nd QTR

 

1Q '22

2Q '21

INCOME STATEMENT:

 

 

 

 

 

 

Net interest income

$

83,939

 

$

77,686

 

$

83,851

 

 

8.0

%

0.1

%

Provision for (recovery of) credit losses

 

2,991

 

 

(4,605

)

 

(4,040

)

 

N.

M.

N.

M.

Other income

 

31,193

 

 

31,656

 

 

31,238

 

 

(1.5

)%

(0.1)%

Other expense

 

70,048

 

 

67,373

 

 

71,400

 

 

4.0

%

(1.9)%

Income before income taxes

$

42,093

 

$

46,574

 

$

47,729

 

 

(9.6

)%

(11.8)%

Income taxes

 

7,769

 

 

7,699

 

 

8,597

 

 

0.9

%

(9.6)%

Net income

$

34,324

 

$

38,875

 

$

39,132

 

 

(11.7

)%

(12.3)%

 

 

 

 

 

 

 

MARKET DATA:

 

 

 

 

 

 

Earnings per common share - basic (a)

$

2.11

 

$

2.40

 

$

2.39

 

 

(12.1

)%

(11.7

)%

Earnings per common share - diluted (a)

 

2.10

 

 

2.38

 

 

2.38

 

 

(11.8

)%

(11.8

)%

Quarterly cash dividends declared per common share

 

1.04

 

 

1.04

 

 

1.03

 

 

%

1.0

%

Book value per common share at period end

 

64.62

 

 

66.24

 

 

65.44

 

 

(2.4

)%

(1.3

)%

Market price per common share at period end

 

121.25

 

 

131.38

 

 

117.42

 

 

(7.7

)%

3.3

%

Market capitalization at period end

 

1,970,228

 

 

2,134,834

 

 

1,918,733

 

 

(7.7

)%

2.7

%

 

 

 

 

 

 

 

 

Weighted average common shares - basic (b)

 

16,249,307

 

 

16,219,889

 

 

16,340,690

 

 

0.2

%

(0.6

)%

Weighted average common shares - diluted (b)

 

16,361,246

 

 

16,331,031

 

 

16,472,800

 

 

0.2

%

(0.7

)%

Common shares outstanding at period end

 

16,249,306

 

 

16,249,308

 

 

16,340,772

 

 

%

(0.6

)%

 

 

 

 

 

 

 

 

PERFORMANCE RATIOS: (annualized)

 

 

 

 

 

 

 

Return on average assets (a)(b)

 

1.42

%

 

1.60

%

 

1.59

%

 

(11.3

)%

(10.7

)%

Return on average shareholders' equity (a)(b)

 

12.86

%

 

14.26

%

 

14.81

%

 

(9.8

)%

(13.2

)%

Yield on loans

 

4.57

%

 

4.31

%

 

4.60

%

 

6.0

%

(0.7

)%

Yield on investment securities

 

2.35

%

 

2.11

%

 

2.31

%

 

11.4

%

1.7

%

Yield on money market instruments

 

0.77

%

 

0.17

%

 

0.10

%

 

352.9

%

670.0

%

Yield on interest earning assets

 

4.04

%

 

3.71

%

 

3.93

%

 

8.9

%

2.8

%

Cost of interest bearing deposits

 

0.16

%

 

0.08

%

 

0.13

%

 

100.0

%

23.1

%

Cost of borrowings

 

2.50

%

 

2.35

%

 

1.91

%

 

6.4

%

30.9

%

Cost of paying interest bearing liabilities

 

0.33

%

 

0.25

%

 

0.29

%

 

32.0

%

13.8

%

Net interest margin (g)

 

3.84

%

 

3.55

%

 

3.74

%

 

8.2

%

2.7

%

Efficiency ratio (g)

 

60.38

%

 

61.16

%

 

61.65

%

 

(1.3

)%

(2.1

)%

 

 

 

 

 

 

 

 

 

OTHER DATA (NON-GAAP) AND BALANCE SHEET:

 

 

 

 

 

 

 

 

Tangible book value per share (d)

$

54.39

 

$

55.98

 

$

55.17

 

 

(2.8

)%

(1.4

)%

Average interest earning assets

 

8,857,089

 

 

8,959,109

 

 

9,062,368

 

 

(1.1

)%

(2.3

)%

Pre-tax, pre-provision net income (m)

 

45,084

 

 

41,969

 

 

43,689

 

 

7.4

%

3.2

%

 

 

 

 

 

 

 

Note: Explanations for footnotes (a) - (m) are included at the end of the financial tables in the "Financial Reconciliations" section.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PARK NATIONAL CORPORATION

Financial Highlights (continued)

As of or for the three months ended June 30, 2022, March 31, 2022, and June 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

Percent change vs.

(in thousands, except ratios)

June 30,
2022

March 31,
2022

June 30,
2021

 

1Q '22

2Q '21

BALANCE SHEET:

 

 

 

 

 

 

Investment securities

$

1,920,724

 

$

1,832,274

 

$

1,461,916

 

 

4.8

%

31.4

%

Commercial loans held for sale

 

6,321

 

 

 

 

 

 

N.

M

N.

M

Loans

 

6,958,685

 

 

6,821,606

 

 

7,035,646

 

 

2.0

%

(1.1

)%

Allowance for credit losses

 

81,448

 

 

78,861

 

 

83,577

 

 

3.3

%

(2.5

)%

Goodwill and other intangible assets

 

166,252

 

 

166,655

 

 

167,897

 

 

(0.2

)%

(1.0

)%

Other real estate owned (OREO)

 

1,354

 

 

760

 

 

813

 

 

78.2

%

66.5

%

Total assets

 

9,826,670

 

 

9,576,352

 

 

9,947,994

 

 

2.6

%

(1.2

)%

Total deposits

 

8,297,654

 

 

7,996,318

 

 

8,214,624

 

 

3.8

%

1.0

%

Borrowings

 

360,234

 

 

394,249

 

 

501,350

 

 

(8.6

)%

(28.1

)%

Total shareholders' equity

 

1,050,013

 

 

1,076,366

 

 

1,069,392

 

 

(2.4

)%

(1.8

)%

Tangible equity (d)

 

883,761

 

 

909,711

 

 

901,495

 

 

(2.9

)%

(2.0

)%

Total nonperforming loans

 

64,627

 

 

86,891

 

 

114,695

 

 

(25.6

)%

(43.7

)%

Total nonperforming loans including commercial loans held for sale

 

70,246

 

 

86,891

 

 

114,695

 

 

(19.2

)%

(38.8

)%

Total nonperforming assets

 

71,600

 

 

87,651

 

 

118,672

 

 

(18.3

)%

(39.7

)%

 

 

 

 

 

 

 

 

 

ASSET QUALITY RATIOS:

 

 

 

 

 

 

 

 

Loans as a % of period end total assets

 

70.81

%

 

71.23

%

 

70.72

%

 

(0.6

)%

0.1

%

Total nonperforming loans as a % of period end loans

 

0.93

%

 

1.27

%

 

1.63

%

 

(26.8

)%

(42.9

)%

Total nonperforming assets as a % of period end loans + OREO + other nonperforming assets

 

1.03

%

 

1.28

%

 

1.69

%

 

(19.5

)%

(39.1

)%

Allowance for credit losses as a % of period end loans

 

1.17

%

 

1.16

%

 

1.19

%

 

0.9

%

(1.7

)%

Net loan charge-offs (recoveries)

$

404

 

$

(269

)

$

(731

)

 

N.M

 

N.M

 

Annualized net loan charge-offs (recoveries) as a % of average loans (b)

 

0.02

%

 

(0.02

)%

 

(0.04

)%

 

N.M

 

N.M

 

 

 

 

 

 

 

 

 

 

CAPITAL & LIQUIDITY:

 

 

 

 

 

 

 

 

Total shareholders' equity / Period end total assets

 

10.69

%

 

11.24

%

 

10.75

%

 

(4.9

)%

(0.6

)%

Tangible equity (d) / Tangible assets (f)

 

9.15

%

 

9.67

%

 

9.22

%

 

(5.4

)%

(0.8

)%

Average shareholders' equity / Average assets (b)

 

11.06

%

 

11.25

%

 

10.74

%

 

(1.7

)%

3.0

%

Average shareholders' equity / Average loans (b)

 

15.65

%

 

16.19

%

 

14.94

%

 

(3.3

)%

4.8

%

Average loans / Average deposits (b)

 

84.27

%

 

83.32

%

 

86.49

%

 

1.1

%

(2.6

)%

 

 

 

 

 

 

 

 

Note: Explanations for footnotes (a) - (m) are included at the end of the financial tables in the "Financial Reconciliations" section.


PARK NATIONAL CORPORATION

Financial Highlights

Six months ended June 30, 2022 and June 30, 2021

 

 

 

 

 

 

 

 

 

 

2022

 

 

2021

 

 

 

(in thousands, except share and per share data)

Six months
ended
June 30

Six months
ended
June 30

 

Percent
change vs
'21

INCOME STATEMENT:

 

 

 

 

Net interest income

$

161,625

 

$

164,585

 

 

(1.8)%

Recovery of credit losses

 

(1,614

)

 

(8,895

)

 

N.M

Other income

 

62,849

 

 

65,327

 

 

(3.8)%

Other expense

 

137,421

 

 

139,265

 

 

(1.3)%

Income before income taxes

$

88,667

 

$

99,542

 

 

(10.9)%

Income taxes

 

15,468

 

 

17,579

 

 

(12.0)%

Net income

$

73,199

 

$

81,963

 

 

(10.7)%

 

 

 

 

 

MARKET DATA:

 

 

 

 

Earnings per common share - basic (a)

$

4.51

 

$

5.02

 

 

(10.2)%

Earnings per common share - diluted (a)

 

4.48

 

 

4.98

 

 

(10.0)%

Quarterly cash dividends declared per common share

 

2.08

 

 

2.06

 

 

1.0

%

Special cash dividends declared per common share

 

 

 

0.20

 

 

N.M.

 

 

 

 

 

Weighted average common shares - basic (b)

 

16,234,598

 

 

16,327,838

 

 

(0.6)%

Weighted average common shares - diluted (b)

 

16,346,141

 

 

16,455,673

 

 

(0.7)%

 

 

 

 

 

PERFORMANCE RATIOS: (annualized)

 

 

 

 

Return on average assets (a)(b)

 

1.51

%

 

1.70

%

 

(11.2)%

Return on average shareholders' equity (a)(b)

 

13.57

%

 

15.71

%

 

(13.6)%

Yield on loans

 

4.44

%

 

4.54

%

 

(2.2)%

Yield on investment securities

 

2.24

%

 

2.41

%

 

(7.1)%

Yield on money market instruments

 

0.34

%

 

0.10

%

 

240.0

%

Yield on interest earning assets

 

3.88

%

 

3.95

%

 

(1.8)%

Cost of interest bearing deposits

 

0.12

%

 

0.14

%

 

(14.3)%

Cost of borrowings

 

2.42

%

 

1.89

%

 

28.0

%

Cost of paying interest bearing liabilities

 

0.29

%

 

0.30

%

 

(3.3)%

Net interest margin (g)

 

3.70

%

 

3.75

%

 

(1.3)%

Efficiency ratio (g)

 

60.76

%

 

60.20

%

 

0.9

%

 

 

 

 

 

ASSET QUALITY RATIOS

 

 

 

 

Net loan charge-offs (recoveries)

$

135

 

$

(707

)

 

N.M.

Annualized net loan charge-offs (recoveries) as a % of average loans (b)

 

%

(0.02)%

 

N.M.

 

 

 

 

 

CAPITAL & LIQUIDITY

 

 

 

 

Average shareholders' equity / Average assets (b)

 

11.16

%

 

10.80

%

 

3.3

%

Average shareholders' equity / Average loans (b)

 

15.92

%

 

14.79

%

 

7.6

%

Average loans / Average deposits (b)

 

83.80

%

 

88.26

%

 

(5.1)%

 

 

 

 

 

OTHER DATA (NON-GAAP) AND BALANCE SHEET:

 

 

 

 

Average interest earning assets

$

8,907,817

 

$

8,925,097

 

 

(0.2)%

Pre-tax, pre-provision net income (m)

 

87,053

 

 

90,647

 

 

(4.0)%

 

 

 

 

 

Note: Explanations for footnotes (a) - (m) are included at the end of the financial tables in the "Financial Reconciliations" section.

 

 

 

 

 


PARK NATIONAL CORPORATION

Consolidated Statements of Income

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

June 30,

(in thousands, except share and per share data)

 

2022

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

 

 

 

 

 

 

 

 

Interest income:

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

77,787

 

$

81,176

 

 

$

150,203

 

 

$

159,913

 

Interest on debt securities:

 

 

 

 

 

 

 

 

Taxable

 

 

7,624

 

 

4,600

 

 

 

13,754

 

 

 

8,856

 

Tax-exempt

 

 

2,676

 

 

2,032

 

 

 

5,123

 

 

 

4,069

 

Other interest income

 

 

260

 

 

186

 

 

 

413

 

 

 

329

 

Total interest income

 

 

88,347

 

 

87,994

 

 

 

169,493

 

 

 

173,167

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

Interest on deposits:

 

 

 

 

 

 

 

 

Demand and savings deposits

 

 

1,333

 

 

401

 

 

 

1,684

 

 

 

787

 

Time deposits

 

 

708

 

 

1,285

 

 

 

1,428

 

 

 

2,869

 

Interest on borrowings

 

 

2,367

 

 

2,457

 

 

 

4,756

 

 

 

4,926

 

Total interest expense

 

 

4,408

 

 

4,143

 

 

 

7,868

 

 

 

8,582

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

83,939

 

 

83,851

 

 

 

161,625

 

 

 

164,585

 

 

 

 

 

 

 

 

 

 

Provision for (recovery of) credit losses

 

 

2,991

 

 

(4,040

)

 

 

(1,614

)

 

 

(8,895

)

 

 

 

 

 

 

 

 

 

Net interest income after provision for (recovery of) credit losses

 

 

80,948

 

 

87,891

 

 

 

163,239

 

 

 

173,480

 

 

 

 

 

 

 

 

 

 

Other income

 

 

31,193

 

 

31,238

 

 

 

62,849

 

 

 

65,327

 

 

 

 

 

 

 

 

 

 

Other expense

 

 

70,048

 

 

71,400

 

 

 

137,421

 

 

 

139,265

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

42,093

 

 

47,729

 

 

 

88,667

 

 

 

99,542

 

 

 

 

 

 

 

 

 

 

Income taxes

 

 

7,769

 

 

8,597

 

 

 

15,468

 

 

 

17,579

 

 

 

 

 

 

 

 

 

 

Net income

 

$

34,324

 

$

39,132

 

 

$

73,199

 

 

$

81,963

 

 

 

 

 

 

 

 

 

 

Per common share:

 

 

 

 

 

 

 

 

Net income - basic

 

$

2.11

 

$

2.39

 

 

$

4.51

 

 

$

5.02

 

Net income - diluted

 

$

2.10

 

$

2.38

 

 

$

4.48

 

 

$

4.98

 

 

 

 

 

 

 

 

 

 

Weighted average shares - basic

 

 

16,249,307

 

 

16,340,690

 

 

 

16,234,598

 

 

 

16,327,838

 

Weighted average shares - diluted

 

 

16,361,246

 

 

16,472,800

 

 

 

16,346,141

 

 

 

16,455,673

 

 

 

 

 

 

 

 

 

 

Cash dividends declared:

 

 

 

 

 

 

 

 

   Quarterly dividend

 

$

1.04

 

$

1.03

 

 

$

2.08

 

 

$

2.06

 

   Special dividend

 

$

 

$

 

 

$

 

 

$

0.20

 


PARK NATIONAL CORPORATION

Consolidated Balance Sheets

 

 

 

(in thousands, except share data)

June 30, 2022

December 31,
2021

 

 

 

Assets

 

 

 

 

 

Cash and due from banks

$

171,114

 

$

144,507

 

Money market instruments

 

75,327

 

 

74,673

 

Investment securities

 

1,920,724

 

 

1,815,408

 

Commercial loans held for sale

 

6,321

 

 

 

Loans

 

6,958,685

 

 

6,871,122

 

Allowance for credit losses

 

(81,448

)

 

(83,197

)

Loans, net

 

6,877,237

 

 

6,787,925

 

Bank premises and equipment, net

 

85,531

 

 

89,008

 

Goodwill and other intangible assets

 

166,252

 

 

167,057

 

Other real estate owned

 

1,354

 

 

775

 

Other assets

 

522,810

 

 

480,901

 

Total assets

$

9,826,670

 

$

9,560,254

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

Deposits:

 

 

Noninterest bearing

$

3,057,977

 

$

3,066,419

 

Interest bearing

 

5,239,677

 

 

4,838,109

 

Total deposits

 

8,297,654

 

 

7,904,528

 

Borrowings

 

360,234

 

 

426,996

 

Other liabilities

 

118,769

 

 

117,971

 

Total liabilities

$

8,776,657

 

$

8,449,495

 

 

 

 

 

 

 

Shareholders' Equity:

 

 

Preferred shares (200,000 shares authorized; no shares outstanding at June 30, 2022 and December 31, 2021)

$

 

$

 

Common shares (No par value; 20,000,000 shares authorized; 17,623,104 shares issued at June 30, 2022 and
17,623,118 shares issued at December 31, 2021)

 

460,645

 

 

461,800

 

Accumulated other comprehensive (loss) income, net of taxes

 

(85,404

)

 

15,155

 

Retained earnings

 

814,241

 

 

776,294

 

Treasury shares (1,373,798 shares at June 30, 2022 and 1,403,555 shares at December 31, 2021)

 

(139,469

)

 

(142,490

)

Total shareholders' equity

$

1,050,013

 

$

1,110,759

 

Total liabilities and shareholders' equity

$

9,826,670

 

$

9,560,254

 


PARK NATIONAL CORPORATION

Consolidated Average Balance Sheets

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

June 30,

(in thousands)

 

 

2022

 

 

2021

 

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

159,095

 

$

131,397

 

 

$

163,884

 

$

139,784

 

Money market instruments

 

 

136,232

 

 

720,238

 

 

 

247,549

 

 

637,531

 

Investment securities

 

 

1,855,313

 

 

1,307,037

 

 

 

1,828,568

 

 

1,234,178

 

Loans

 

 

6,841,376

 

 

7,094,099

 

 

 

6,835,389

 

 

7,116,353

 

Allowance for credit losses

 

 

(78,907

)

 

(87,083

)

 

 

(81,158

)

 

(88,511

)

Loans, net

 

 

6,762,469

 

 

7,007,016

 

 

 

6,754,231

 

 

7,027,842

 

Bank premises and equipment, net

 

 

87,029

 

 

90,269

 

 

 

87,879

 

 

90,006

 

Goodwill and other intangible assets

 

 

166,516

 

 

168,211

 

 

 

166,716

 

 

168,449

 

Other real estate owned

 

 

773

 

 

822

 

 

 

766

 

 

1,016

 

Other assets

 

 

511,593

 

 

447,088

 

 

 

502,203

 

 

444,221

 

Total assets

 

$

9,679,020

 

$

9,872,078

 

 

$

9,751,796

 

$

9,743,027

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

Noninterest bearing

 

$

3,097,920

 

$

2,940,602

 

 

$

3,062,154

 

$

2,866,909

 

Interest bearing

 

 

5,020,698

 

 

5,261,608

 

 

 

5,095,085

 

 

5,195,848

 

Total deposits

 

 

8,118,618

 

 

8,202,210

 

 

 

8,157,239

 

 

8,062,757

 

Borrowings

 

 

380,361

 

 

514,855

 

 

 

395,806

 

 

526,715

 

Other liabilities

 

 

109,548

 

 

95,064

 

 

 

110,832

 

 

101,332

 

Total liabilities

 

$

8,608,527

 

$

8,812,129

 

 

$

8,663,877

 

$

8,690,804

 

 

 

 

 

 

 

 

Shareholders' Equity:

 

 

 

 

 

 

Preferred shares

 

$

 

$

 

 

$

 

$

 

Common shares

 

 

459,418

 

 

457,949

 

 

 

460,601

 

 

459,327

 

Accumulated other comprehensive loss, net of taxes

 

 

(58,869

)

 

(4,876

)

 

 

(30,452

)

 

(1,865

)

Retained earnings

 

 

809,413

 

 

734,993

 

 

 

798,724

 

 

724,183

 

Treasury shares

 

 

(139,469

)

 

(128,117

)

 

 

(140,954

)

 

(129,422

)

Total shareholders' equity

 

$

1,070,493

 

$

1,059,949

 

 

$

1,087,919

 

$

1,052,223

 

Total liabilities and shareholders' equity

 

$

9,679,020

 

$

9,872,078

 

 

$

9,751,796

 

$

9,743,027

 

 

 

 

 

 

 

 


PARK NATIONAL CORPORATION

Consolidated Statements of Income - Linked Quarters

 

 

 

 

 

 

 

 

2022

 

2022

 

 

2021

 

 

2021

 

2021

 

(in thousands, except per share data)

2nd QTR

1st QTR

4th QTR

3rd QTR

2nd QTR

 

 

 

 

 

 

Interest income:

 

 

 

 

 

Interest and fees on loans

$

77,787

$

72,416

 

$

79,168

 

$

78,127

$

81,176

 

Interest on debt securities:

 

 

 

 

 

Taxable

 

7,624

 

6,130

 

 

5,698

 

 

4,904

 

4,600

 

Tax-exempt

 

2,676

 

2,447

 

 

2,209

 

 

2,029

 

2,032

 

Other interest income

 

260

 

153

 

 

191

 

 

360

 

186

 

Total interest income

 

88,347

 

81,146

 

 

87,266

 

 

85,420

 

87,994

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

Interest on deposits:

 

 

 

 

 

Demand and savings deposits

 

1,333

 

351

 

 

373

 

 

435

 

401

 

Time deposits

 

708

 

720

 

 

831

 

 

1,011

 

1,285

 

Interest on borrowings

 

2,367

 

2,389

 

 

2,356

 

 

2,372

 

2,457

 

Total interest expense

 

4,408

 

3,460

 

 

3,560

 

 

3,818

 

4,143

 

 

 

 

 

 

 

Net interest income

 

83,939